Pawning vs. Selling: What’s the Difference?

Have you ever been strapped for cash or found yourself in a fix where you need a few extra bucks to pay off that car bill, help a friend or family member, or get your youngster some much-needed school supplies?

If you have ever been in a bind, then there is a chance that you have attempted to sell or pawn your possessions. If you haven’t had an experience in a pawn shop yet, but you are interested in learning more, then you are in the right place.

Pawning or selling your items at a pawn shop can sometimes be met with a negative connotation, but in reality, it is simply a transaction between two parties. If you are new to this experience, though, you may not realize that you have two different options in a pawn store: to pawn your possession or sell it outright.

What’s the Difference Between Pawning and Selling?

In a nutshell, it all comes down to whether you plan on selling your item permanently – just like how anyone sells an item – or do you plan on only temporarily selling the item?

Pawning, by definition, is the act of giving one of your more expensive items to a pawnbroker as a deposit of sorts. You can bring any item of value – a guitar, television, gold jewelry – into the shop and have it appraised by a pawnbroker. He or she will assess your item’s value and offer a pawn value that you can receive in cash. In return, your item is kept by the pawnbroker as collateral against the money you have borrowed.

When you are ready to retrieve your item, you must pay back the original loan value in addition to interest charges to receive your property back. You may also renew your loan period in some cases by paying off only the accrued interest amount, which is a good option if you need more time to pay back your owed amount.

The significant difference between this and selling is that when you bring your item in to sell, you and the pawnbroker make an agreement on how much the item is worth and you get that amount in cash. Just like a sale between you and a friend or other person, you receive the agreed upon value and we take possession of your item in exchange. This arrangement is great when you need money or you just want to unload some items that you don’t use anymore and get some spending money in the process.

Get More With a Shop You Can Trust

With hundreds of thousands of pawnbrokers around the country, what is the advantage of using Lincoln Square Pawnbrokers? How about extended loan periods!

That’s right. While New York state law gives you a four-month period to redeem your items, at Lincoln Square Pawnbrokers we offer a minimum six-month loan period instead. That gives you more time to pay back your pawn loan and gives you more flexibility with your pawn.

Now that you know how great working with your local pawn shop can be, feel free to come in and see us today. Still have questions? No problem. Our team can answer any questions you have and make sure that you’re comfortable with the process from start to finish. Visit us on Amsterdam Avenue in New York today, or call us at 212-865-8860 to learn more.